"In line with the historical pattern, but strongly contrary to
popular belief, falling rates have driven massive flows into
bonds (+$760 billion above trend) and out of equities (-$1.7
trillion)," Chadha wrote in a note to clients.

This would seem, as Chadha notes, somewhat counterintuitive. Why
would you sell stocks that are (in aggregate) soaring to new
heights while pouring money into bonds that, at least on the face
of it, offer little by way of yield?

For one thing, the stock selling may be indicative that clients
are taking profits. If you don't expect stocks to push much
further past the highs, it makes sense to take some profits while
you can.

This is further supported by the fact that Bank of America
Merrill Lynch reported on Tuesday that its clients sold equities
for the second straight week, dumping $407 million, while the
S&P 500 and Dow Jones set records.

Deutsche
Bank

It appears that even in stocks, investors are looking for safety.
Chadha found that investors were rotating out of seemingly
volatile European equities and into "safer" US equities such as
defensive sectors with large dividends, which Chadha described as
"bond-like."

Meanwhile, investors are pouring money into corporate and
emerging-market debt. While this is considered relatively safer
than the average stock, investors are searching for at least some
yield compared with US government bonds.

Essentially, based on Chadha's observations, it appears that as
we've seen the chasm between stocks and bonds grow, investors
have decided it may be time to get a bit safer.